New credit score disclosure regulations that take effect in July will change the information applicants receive after applying for a bad credit auto loan
If you’re thinking of applying for a terrible credit auto loan in the near future, you should be aware of how the new financial reform bill will change the information you receive.
We think it’s important that you know this, as many of us here at Auto Credit Express have been working in bad credit car sales for the past two decades. During that time, we’ve helped hundreds of buyers get approved auto loans.
We also show them how to avoid a tote the note dealer (applicants outside our retail areas can fill out our online auto loans application to find the right dealer near them) while teaching them about the loan process (to prevent repossession).
As part of the financial reform bill that will take effect on July 21st, any lender that sends you a notice following either a credit denial or an approval with an interest rate higher than their best one must include the credit score that was used in making the credit decision.
Along with that score the lender also has to include the following:
• The credit score range of the scoring model used by the lender
• The key factors or reason codes that adversely affected the credit score, with a requirement to disclose five “reason codes” any time inquiries are a “key factor” that adversely affected the score
• The date on which the credit score was created
• The credit bureau that provided the credit score
The Bottom Line
As a consumer, you should be aware of the new rules that begin this July. You should also know that if you have been turned down for a conventional car loan it doesn’t mean your only choice now is a tote the note dealer.
At Auto Credit Express, we specialize in placing customers with bad credit with dealers that can help them get approved for a second chance auto loan.
So if you are serious about getting your car credit back on track you can begin now by filling out our terrible credit car loans application.
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